A Public Space Protection Order (PSPO) would have banned noisy busking, street preaching and noisy protests.

But the proposal sparked freedom of speech fears about the impact on demonstrators picketing the Council House, International Convention Centre and West Midlands Police headquarters.

Campaigners described the move as ‘draconian’ and claimed the vibrancy and life of the city centre would be damaged by the ban.

More than 650 people responded to the council’s consultation, with 60 to 40 against the PSPO, according to Labour cabinet member James McKay.

Coun McKay said: “Many felt the PSPO was the right tool to deal with this issue, but many also contrarily argued that the vibrancy of the city centre provided by busking, by debate and by free speech were far more important priorities.

“The message which came back was: ‘If you want to crack walnut, use a nutcracker not a sledgehammer’.

“In the light of the consultation I’m pleased to announce we will not be proceeding with the PSPO.”

Coun McKay said the existing code of conduct for busking would instead be reviewed and the council would look at targeted action against other activities which were a nuisance or excessively noisy.

The Birmingham Manifesto Club, which campaigns against excessive regulation, welcomed the decision.

It tweeted: “Victory in Birmingham – there will be no ban on amplification in the city centre.

“A great alliance against it.”

During the campaign against the proposed ban, Bridget Parsons, a former teacher and political activist, said of the objections: “I think if Birmingham was just a place where all we are allowed to do is go and shop then we would be greatly impoverished.”

“We want our city to be vibrant and full of ideas, where people can share their music and political or religious beliefs as loudly as they wish.”